Strategic Real Estate Coach » Short Sales

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Josh Cantwell — Tue, 15 May 2012 16:54:43 +0000

2012 Could Be a Record Year for Short Sales

Josh Cantwell — Sun, 29 Apr 2012 10:00:58 +0000

Short sales are on the rise. Compared to a year ago, the number of short sales being done increased 33%, according to RealtyTrac. In fact, short sales beat out REO sales in 12 states. In all, 32 states saw an increase in pre-foreclosure sales, typically short sales.

There are also signs that lenders are more willing to accept aggressively priced short sales, as evidenced by the decline in pre-foreclosure home prices. In January, a short sale sold at an average 21% discount, as compared to the price of a non-foreclosure home sale. While the average time it took to complete a short sale actually tripled since 2007 when the average was 113 days, recent efforts have been made to streamline the process. Beginning in June, the GSEs will require servicers to reach a short sale decision within 30 days of receiving an offer.

For the complete article, click here.

Which Lenders are the Fastest for Short Sales?

Josh Cantwell — Sun, 29 Apr 2012 10:00:42 +0000

RealtyTrac recently put together a list outlining which lenders/servicers move through the short sale process the fastest and the cheapest. The frontrunners? Freddie Mac, Fannie Mae and FHA have the shortest timelines with 193 days, followed by Ally Financial at 321 days and PNC Financial at 353 days.

The short sale timeline being used as a measure starts as soon as the property begins the foreclosure process to the date it is sold as a pre-foreclosure. The new guidelines instituted by the GSEs, which call for a decision within 30 days, will surely change the game. BOA followed quickly by implementing a 20-day short sale decision timeline. As far as pricing goes, the GSEs again lead the way, selling homes for the least amount, averaging just over $128,000.

Read the complete article here.

Short Sales Making a Comeback With Investors

Josh Cantwell — Sun, 01 Apr 2012 10:00:55 +0000

This is good news for real estate investors, but honestly, something we at SREC never stopped doing, even when things got really tough. Short sales are once again are becoming popular with investors. According to a recent survey by HousingPulse, the percentage of investors pursuing short sales rose by nearly 3.5% in a six-month period.

During the same time frame, investor share of all short sales rose by nearly 5%. By contrast, the percentage of homeowners pursuing short sales fell. This can be attributed to the long approval times from mortgage servicers and the unknown closing dates. The average homeowner does not have the resources to wait it out like an informed, experienced investor can. To date, nearly 50% of all the homes on the market are distressed properties, which represents an amazing opportunity for investors.

To read more, click here.